News Column

Real food profits take a hit due to sugar row

May 2, 2014

greig cameron; greig cameron

THE Real Good Food Company saw its share price climb 1.3% in spite of confirming a sugar dispute has hit annual profits and is still unresolved.

The business, which includes Carluke based jam maker R&W Scott, among its subsidiaries, expects earnings before interest, tax, depreciation and amortisation to be pound(s)3.3 million in the 12 months to March 31.

That would compare to EBITDA of pound(s)10.5m which resulted in an underlying pre-tax profit of pound(s)6.3m in the previous year.

The Napier Brown subsidiary is involved in a pricing dispute with British Sugar, owned by Associated British Food, and has made a complaint which has been referred to the Competition and Markets Authority.

Real Good Food said its Garret Ingredients arm was also feeling the impact of that but admitted: "The group remains unable to be definite on a timetable for the resolution of the dispute."

It said that problems had masked good progress in other parts of the company which included year-on-year EBITDA growth at bakery ingredients firm Renshaw and dessert maker Haydens.

Other group businesses were said to be in "good shape" with investment in R&W Scott delivering sales growth.

Shares closed up 0.5p at 38.5p.


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Source: Herald, The (Scotland)


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